Emusic.com axes one-in-three staff

NEWS The cuts are part of a major restructuring programme that the company hopes will save in excess of $16m this year. Three key directors - Peter Astiz, Interim COO, James Chapman, VP of Business Development and Joseph Howell, CFO, are among 66 staff set leave the company as part of the cost-cutting measures. Gene Hoffman, CEO of Emusic.com, said the restructuring is necessary to offset losses being incurred due to the increase in illegally distributed music online and a declining internet advertising market. However, Hoffman's remarks are in stark contrast with those of MP3.com boss Michael Robertson. In an interview with Reuters, Robertson remained confident that online advertising will be a sustainable model on the internet, claiming it has become fashionable to bash it. He said: "If you're a leader, you'll be in good shape."